A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are retired for $68,400 cash, resulting in a loss of $4,400. The amount to be reported under cash flows from financing activities is:

A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are retired for $68,400 cash, resulting in a loss of $4,400. The amount to be reported under cash flows from financing activities is:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.

Question

A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are retired for $68,400 cash,
resulting in a loss of $4,400. The amount to be reported under cash flows from financing activities is:
Multiple Choice
$(68.400).
$(4.400).
$14,000.
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